The Merchant Shipping (Maritime Labour Convention) (Compulsory Financial Security) (Amendment) Regulations 2018

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Merchant Shipping (Maritime Labour Convention) (Minimum Requirements for Seafarers etc.) Regulations 2014 (S.I. 2014/1613) (“the Minimum Requirements Regulations”) to implement the amendments of 2014 to the Maritime Labour Convention 2006 (“the 2014 amendments”), which were approved by the 103rd session of the International Labour Conference on 11 June 2014. They also amend the Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 (S.I. 2013/1785).

Part 2 of these Regulations implements the 2014 amendments. It introduces, at regulation 2(6), Parts 10A and 10B into the Minimum Requirements Regulations.

The inserted Part 10A deals with financial security for shipowner’s liability for death or injury to seafarers and inserts regulations 53A to 53K into the Minimum Requirements Regulations.

The inserted regulations 53B and 53C require UK and certain other ships to be covered by a contract of insurance or other form of financial security to provide financial assurance in the event of long term disability or death to seafarers due to occupational illness, injury or hazard (“shipowner’s security”).

The inserted regulation 53D provides for payment of compensation where the amount payable is set out in the seafarer’s seafarer employment agreement. Under this provision compensation must be paid within 14 days of the financial security provider being satisfied that the shipowner concerned is liable to pay the compensation.

Where a seafarer suffers long term disability, the amount of compensation payable in respect of which takes longer than 7 days from the days of the shipowner becoming liable to determine, and is suffering hardship, the inserted regulation 53E provides that interim payments may be made to the seafarer.

The inserted regulation 53F makes it an offence for any person to induce another to accept less than the full amount of compensation payable in respect of death or long term disability of a seafarer, as set out in a seafarer’s seafarer employment agreement.

Shipowners are under a duty under the inserted regulation 53G to display each certificate or other documentary evidence relating to the ship in a conspicuous place on board ship and, if it is not in English, along with an English translation. The contents of the certificate or other documentary evidence is set out in Schedule 3.

The inserted regulation 53H provides the termination of a shipowner’s security before the end of its period of validity by the shipowner’s security provider is effective only if the shipowner’s security provider gives 30 days’ prior notice in writing to the Secretary of State.

Following the termination of a shipowner’s security before the end of its period of validity, the provider must, under the inserted regulation 53I, give notice of the termination to the Secretary of State within 30 days.

Under the inserted regulation 53J, a shipowner who becomes aware that a shipowner’s security is to be terminated (or has been terminated) must give notice to all seafarers who work on the ship until the shipowner’s security has been replaced or reinstated.

Part 10B deals with financial security to provide financial assistance to abandoned seafarers and inserts regulations 53K to 53S into the Minimum Requirements Regulations.

The inserted regulations 53M and 53N require UK and certain other ships to be covered by a contract of insurance or other form of financial security which provides financial assistance to seafarers who are abandoned (as defined) (“abandonment security”). Regulation 53N also provides that seafarers may make claims for financial assistance directly to abandonment security providers (defined as “abandonment claims”).

The inserted regulation 53O provides that where an abandonment claim is made providers must determine within 7 days of receipt whether the seafarer making the claim is entitled to assistance. If the seafarer is so entitled, payment must be made within 14 days of receipt of the claim. If a provider fails to make this determination, financial assistance must nevertheless be given to the seafarer.

Regulation 2(3) amends the Minimum Requirements Regulations to make it discretionary for the Secretary of State to repatriate a UK seafarer (or support the seafarer pending repatriation), where that seafarer is entitled to receive financial assistance under an abandonment security.

The inserted regulation 53P provides for the subrogation of a seafarer’s rights against a shipowner to an abandonment security provider who has provided the seafarer with financial assistance.

Shipowners are under a duty under the inserted regulation 53Q to display each certificate or other documentary evidence relating to the ship in a conspicuous place on board ship and, if it is not in English, along with an English translation. The contents of the certificate or documentary evidence is set out in Schedule 4.

The inserted regulation 53R provides that the termination of an abandonment security before the end of its period of validity by the abandonment security provider is effective only if the abandonment security provider gives 30 days’ prior notice in writing to the Secretary of State.

Under the inserted regulation 53S, a shipowner who becomes aware that an abandonment security is to be terminated (or has been terminated) must give notice to all seafarers who work on the ship until the shipowner’s security has been replaced or reinstated.

Regulation 2(8) and (9) provide for penalties consequent on contravention of the aforementioned inserted provisions.

Part 3 makes change to the Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 to substitute a definition for “the UK Maritime Labour Convention standards”.

Merchant Shipping Notices are published by the Maritime and Coastguard Agency (“the MCA”) (an executive agency of the Department for Transport). Copies may be obtained from M-Notices Subscriptions, PO Box 362, Europa Park, Grays, Essex RM17 9AY, email: [e-mail]. They may also be accessed via the MCA’s website: www.gov.uk/government/organisations/maritime-and-coastguard-agency, which also has details of any amendments or replacements.

The 2014 amendments may be downloaded from the website of the International Labour Organisation at the following address: http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_248905.pdf. Hard copies can be obtained by writing to the Seafarer Safety and Health Manager, The Maritime and Coastguard Agency, Spring Place, 105 Commercial Road, Southampton, SO15 1EG.

The Maritime Labour Convention may be downloaded from the website of the International Labour Organisation at www.ilo.org/global/standards/maritime-labour-convention/lang--en/index.htm. Copies of the Maritime Labour Convention may be obtained as a priced publication from www.tsoshop.co.uk, by post from TSO Customer Services, PO Box 29, Norwich, NR3 1GN, tel: [phone].

A regulatory triage assessment of the effect that these Regulations will have on the costs of business and the voluntary sector is available and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.